Hello there,I would rather call it a speculation at the moment. I know that ALU is going through regional spin-offs, but Lucent spinoff is probably the last option. Nevertheless Motorola has gone through that and half of it was purchased by Google. So, it is still a possibility.

1) In the above model, terminal rate is '0'. 2) NPV range is between 72 and 1033) The growth rate depends on Morningstar. They are a bit more conservative than Yahoo Finance. But it is better to be conservative.

I would have appreciated if you read the article with less bias. The model suggests that a range about $85 to $125. And the stock is currently at the lower end of this range. The upper boundary is the maximum. This is a moving long-term target. And the model above works well with companies that has stable earnings which is the case for Exxon Mobile.

Thank you all for the comments. We decided to write a follow-up where we analyzed the trend in cash flows. Unfortunately, our cash flow analysis also suggests a negative trend in dividend sustainability ratios even after the dividend cut.